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> There is enough vacant housing in China to house Spain. This sounds bad off-hand but you have to consider the scale of China. Spain's population is roughly 3

> There is enough vacant housing in China to house Spain. This sounds bad off-hand but you have to consider the scale of China. Spain's population is roughly 3% of China. 3% of the US population is 10 million, which is less than the 16 million vacant homes in the US (https://www.nytimes.com/2022/03/10/realestate/vacancy-rate-by-state.html https://www.nytimes.com/2022/03/10/realestate/vacancy-rate-b...). And that's still a generous comparison since more than 1 person lives in a home.

onlyrealcuzzo 4y ago
~90% of people in China are homeowners [1]. China's investments are extremely disproportionately R/E compared to other countries (70% vs 35% for the US) [2]. The CCP has immense pressure to prop this bubble up, and they have many options: * Lower lending standards (you need to put 25% down to buy a house in China, but only 3.5% in the US) * Lower interest rates (mortgage rates are negative in some parts of Europe, but ~5%+ in China) * Mortgage interest deduction [1] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7546956/#:~:text=Today%20China%20is%20a%20country,et%20al.%2C%202020 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7546956/#:~:tex...). [2] https://fortune.com/2021/12/02/chinese-real-estate-investing-home-ownership-evergrande/#:~:text=China%20is%20a%20nation%20of,%2C%20that%20share%20is%2035%25 https://fortune.com/2021/12/02/chinese-real-estate-investing....